Win Semiconductors’ 1Q19 net profit drop by ~80% and EPS hit a new low

Win Semiconductors (3105-TW) held an investor conference today on April 25th. Due to low-season effect and weak demand, its 1Q19 GM fell to 25%, reaching a historical low level. In addition, its 1Q19 net profit was NTD151mn (-79% QoQ, -79% YoY) with EPS of NTD0.41, hitting a six-year low.

Win Semiconductors’ 1Q19 revenue was NTD4.463bn (-14% QoQ, -19% YoY). Its 1Q19 operating profit margin was 8.3% (-10.4% QoQ, -15.3% YoY).

Win Semiconductors pointed out that due to low-season effect and sluggish demand in the terminal market, its 1Q19 revenue declined and the capacity utilization rate also dropped to around 50%. Moreover, as product mix did not improve significantly, the company’s 1Q19 GM was 25%, reaching a historical low level.

The company said that Win Semiconductors’ FY19 quarterly revenue and earnings may bottom in 1Q19. Catalyzed by the inventory ramp-up of Asia PA design customers and the recovery of capacity utilization rate, the company’s 2Q19 revenue may increase by 14-16% and GM is expected to return to 31-33%.

The company said 3Q19 revenue/earnings may be catalyzed by the peak season. The company holds a positive outlook on FY19 revenue/earnings with the acceleration of 5G development.